The Gold to Platinum Ratio
Platinum is rarer than Gold but it is an important metal because of its diversification to any investor's portfolio and its unique place in history with a lower price point than Gold. The Gold to Platinum ratio is an important historical lesson because it helps identify just how rare Platinum is and how its value has changed over time in relation to Gold.
Platinum has become one of the most intriguing metals because it has historically traded at a higher price than Gold. That is an indication of two things: “Platinum is more rare than Gold [and] it has more uses in industry, so it gets used up.” (Daily Wealth) As of March 2017, you can buy Platinum at a lower price than Gold. Other factors that account for prices being lower than Gold include, but are not limited to, social and political factors, demand, market speculation and mining missions. You can see the existing Platinum spot price and see how it has changed over time.
In January 2015, the Platinum spot price dipped below the Gold spot price. According to Seeking Alpha, “You would have to go back all the way to early 2013 for the previous time that Platinum was cheaper than Gold.” Just because Platinum's price per ounce is lower than Gold, it does not mean the value of Platinum has greatly diminished. Platinum is more difficult to produce and it only comes from very few parts of the world. The top Platinum producing nations as of 2017 are South Africa, Russia, Zimbabwe and Canada. (World Atlas) It is no surprise South Africa is the top Platinum producer, as the African country “[possesses] over 80% of the world’s Platinum group metal reserves.” (Projects IQ)
If history is any indication, the price of Platinum does not drop below the price of Gold very often. “Over the last 28 years [as of 2015], Gold has only traded at a higher price than Platinum 7% of the time.” (Daily Wealth) Investors have a wide selection of Platinum products from which to choose. Even though Platinum may be a popular metal in jewelry, Platinum also comes in the form of Platinum coins, Platinum bullion such as Platinum bars and much more.
Why Platinum is a Good Investment Now
Precious Metals prices are difficult to predict from year to year and it is impossible to know for sure if or when Platinum's price will be higher than Gold. History has shown the price will not stay below the Gold price for too long. As the demand for Platinum fluctuates, the price of Platinum will move with it. This is why it is important to monitor up-to-date Platinum spot prices. Platinum coins and Platinum bars make good investments for all levels of investors. Whether you prefer Platinum bars or Platinum coins, you can find a wide selection of Platinum at APMEX. With the price of Platinum below Gold, the time to invest is now.
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